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'''Bethlehem Steel''' (1857-2001) was a major producer in the U.S. [[Steel industry]], based in Bethlehem, Pennsylvania. It went bankrupt in 2001.
Charles Schwab (1862- 1939) and Eugene Grace (1876–1960) made Bethlehem Steel (so named in 1899) the second-largest American steel company by the 1920s. Schwab started with [[Andrew Carnegie|Carnegie Steel]] and by 1897 was its president. He became the first president of US Steel in 1901; Judge Gary was his boss. He left to become head of Bethlehem Steel in 1903.
Bethlehem concentrated on government contracts, such as ships and naval armor, and on construction beams. From 1945 to 1959, Bethlehem's capacity rose from 13 million tons a year to 23 million tons from 1945 to 1955, reflecting the widespread optimism in the steel industry. However the company refused to invest in new technologies then being developed in Europe and Japan. Seeking labor peace in order to avoid strikes, Bethlehem like the other majors agreed to large wage and benefits increases that obliged them to raise prices at a time when the foreign steel companies had just begun to challenge their American counterparts. As Bethlehem's comptroller explained, "We're not in business to make steel, we're not in business to build ships, we're not in business to erect buildings. We're in business to make money." The company's president Arthur Homer explained in 1962, that Bethlehem was profitable enough and did not need to innovate. All the plants were making money. "We have a nice business as it is," he boasted. The problem was that short term profits meant avoiding innovations and that led to long-term competitive weaknesses.
==Further reading==
* Cotter, Arundel. ''The Story of Bethlehem Steel'' (1916) 65 pages; [http://books.google.com/books?id=4nIoAAAAYAAJ&printsec=frontcover&dq=intitle:bethlehem+intitle:steel&lr=&num=30&as_brr=0 full text online]
* Hessen, Robert. ''Steel Titan: The Life of Charles M. Schwab'' (1990) 376 pages; [http://books.google.com/books?id=vEsDi_0baWQC&printsec=frontcover&dq=intitle:Charles+intitle:Schwab&lr=&num=30&as_brr=0 excerpt and text search]
* Hogan, William T. ''Economic History of the Iron and Steel Industry in the United States''. (1971) 5 vol.
[[Category:Business]]
[[Category:Economic history]]
Charles Schwab (1862- 1939) and Eugene Grace (1876–1960) made Bethlehem Steel (so named in 1899) the second-largest American steel company by the 1920s. Schwab started with [[Andrew Carnegie|Carnegie Steel]] and by 1897 was its president. He became the first president of US Steel in 1901; Judge Gary was his boss. He left to become head of Bethlehem Steel in 1903.
Bethlehem concentrated on government contracts, such as ships and naval armor, and on construction beams. From 1945 to 1959, Bethlehem's capacity rose from 13 million tons a year to 23 million tons from 1945 to 1955, reflecting the widespread optimism in the steel industry. However the company refused to invest in new technologies then being developed in Europe and Japan. Seeking labor peace in order to avoid strikes, Bethlehem like the other majors agreed to large wage and benefits increases that obliged them to raise prices at a time when the foreign steel companies had just begun to challenge their American counterparts. As Bethlehem's comptroller explained, "We're not in business to make steel, we're not in business to build ships, we're not in business to erect buildings. We're in business to make money." The company's president Arthur Homer explained in 1962, that Bethlehem was profitable enough and did not need to innovate. All the plants were making money. "We have a nice business as it is," he boasted. The problem was that short term profits meant avoiding innovations and that led to long-term competitive weaknesses.
==Further reading==
* Cotter, Arundel. ''The Story of Bethlehem Steel'' (1916) 65 pages; [http://books.google.com/books?id=4nIoAAAAYAAJ&printsec=frontcover&dq=intitle:bethlehem+intitle:steel&lr=&num=30&as_brr=0 full text online]
* Hessen, Robert. ''Steel Titan: The Life of Charles M. Schwab'' (1990) 376 pages; [http://books.google.com/books?id=vEsDi_0baWQC&printsec=frontcover&dq=intitle:Charles+intitle:Schwab&lr=&num=30&as_brr=0 excerpt and text search]
* Hogan, William T. ''Economic History of the Iron and Steel Industry in the United States''. (1971) 5 vol.
[[Category:Business]]
[[Category:Economic history]]